 Posted 5/2/2007 9:39:57 AM
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My home has been FSBO for about a month now, we are in a "must sell" situation. I would love to have an agent represent me, however if I had an agent represent me and paid a 6% commission, I literally would be left with nothing, possibly digging into my savings to complete the sale. I had an agent come in yesterday and give me a CMA and because of my situation he told me that he would only charge a 4.5% commission. Sounds nice, however I am skeptical because, what buyers agent is going to look at a home where the commission would only be 2.25%. Should I be weary?
Thanks,
Monica
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Posted 5/3/2007 4:30:47 PM
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Hi Monica:
There's nothing wrong with paying a lower commission. In fact, the average commission rate across the country is around 5 percent.
Keep in mind that there's nothing to say that the listing agent has to split the commission 50-50 with the selling agent (the one who finds the buyer). If the listing agent charges you 4.5 percent, just be sure that of that amount, 2.5 to 3 percent goes to the selling broker. You want the selling agent to have a "full commission." That way you'll be giving brokers an iincentive to bring in buyers.
Good luck!
Bob Irwin
Author, "For Sale by Owner Kit"
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Posted 5/14/2007 11:12:50 AM
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Monica,
4.5% is a really good offer! I recently went with an agent after 7 months FSBO without any nibbles. I chose the agents who sold me the house 8 years ago, with whom I have a good rapport. They "cut me a break" and came down from their normal 6.5% to 5.5%. The way it breaks down for them is they get 2.5%, and the buyer's agent gets 3%.
So as Mr. Irwin said, that 4.5% may not necessarily be broken down 50/50.
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